Open AccessIs Fiscal Policy Coordination Needed in a Common Currency Area?
Author(s) -
Ansgar Belke,
Daniel Gros
Publication year - 2008
Publication title -
ssrn electronic journal
Language(s) - English
Resource type - Journals
ISSN - 1556-5068
DOI - 10.2139/ssrn.1280176
Subject(s) - download , currency , computer science , coordination failure , world wide web , business , internet privacy , monetary economics , economics , macroeconomics
It is widely assumed that a common currency makes it desirable to have also a common fiscal policy. However, if fiscal policy is a source of shocks, independent national fiscal policies are generally preferable because they allow for risk diversification.
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